What is a decision making model?
Decision Making is a basic function of manager, economics is a
valuable guide to the manager. There are basically two major models
of decision-making - the classical model and the administrative
model.
The classical model of decision making is a prescriptive
approach that outlines how managers should make decision. Also
called the rational model, the classical model is based on economic
assumptions and asserts that managers are logical, rational
individuals who make decision that are in the best interest of the
organization.
The Administrative model of decision making is a descriptive
approach that outlines how managers actually do make decisions.
Also called the organizational, neoclassical, or behavioral model,
the administrative model is based on the work of economist Herbert
A.